Demand for branded residences in Dubai is poised for a significant increase, potentially driving prices up by 20%, as international investors seek to upgrade their lifestyle. The current average price for these properties stands at about $1,769 per square foot, with projections suggesting a price rise of 10-20%.
Dubai’s market for branded residences is undergoing rapid expansion, fuelled by interest from ultra-high-net-worth individuals (UHNWIs) across various demographics, particularly from regions such as India, Europe, Russia, China, and the United States. These individuals view branded residences as both a lifestyle upgrade and a strategic investment. Experts attribute this demand surge to global increases in wealth, especially in Asia, alongside an expanding portfolio of ultra-luxury residential projects in the city.
New projects, such as Sofitel’s first branded house in Dubai, partnerships between Rove Hotels and IRTH Group, and IHG Hotels & Resorts’ standalone Regent residences, are set to significantly alter Dubai’s skyline. Depending on factors like location and brand prestige, prices for these residences could rise by up to 25%.
High rental returns, estimated to grow at a rate of 12% annually by 2026, also incentivise investment in this sector. Historically known for luxury and innovation, Dubai has now elevated its real estate offerings, attracting a global clientele of affluent investors, including billionaires and business magnates.
Dubai’s appeal to UHNWIs is further bolstered by a unique blend of economic stability, a favourable tax environment, and strategic geographical positioning. Government initiatives like the Golden Visa offer added stability and incentives for foreign investment.
As branded residential projects continue to climb, expected to reach 120 by 2028, developers are partnering with renowned luxury brands such as Bulgari and the Four Seasons. These properties promise unparalleled service, security, and customisation options that rival the most exclusive hotel accommodations.
Upcoming projects will be visually impressive, offering features like waterfront views, private beaches, and state-of-the-art amenities. Developers are increasingly incorporating luxury with practicality, ensuring privacy, exclusive cultural, and recreational access, alongside environmental sustainability.
Dubai’s political stability and emphasis on lifestyle hubs attract UHNWIs who desire exclusivity, community, and bespoke services, similar to elite locales like Monaco or Miami. With ongoing investments and innovative developments, Dubai continues to solidify its status as an elite, lifestyle-rich destination for the global affluent, seamlessly blending opulence with a sense of belonging, setting new standards in luxury living.
